5 Stock Trading Tools to Boost Your Returns

Nov 16, 2020 08:53 PM ET
5 Stock Trading Tools to Boost Your Returns

As a stock trader, having access to quality tools can help you identify opportunities and make better decisions. That is why most hedge funds spend thousands of dollars every month on Bloomberg Terminal and Reuters Eikon subscriptions. In this article, we will look at the best stock trading tools you should consider using today.

Seeking Alpha – Best for Research and News

Quality investment research, especially from leading companies, like Roubini Research, and investment banks, like Goldman Sachs, is usually expensive. Indeed, unless it is provided by a broker for free, we do not recommend paying for them. That is where Seeking Alpha comes in. The company offers a platform where analysts from around the world can publish their investment reports. 

Every day, they publish tons of reports about the largest players in the market, economy, currency pairs, commodities, exchange-traded funds, and cryptocurrencies. As a reader, you can access this information for free.

Seeking Alpha is more than just an investment portal. The platform offers a complete suite of features that can help you make informed decisions. For example, it is one of the biggest publishers of earnings calls by customers. It also has a newsfeed that is updated by the minute when the market is open. It also has a screening tool, a large data set of the company's earnings, earnings calendar, IPO calendar, and market pulse. 

Seeking Alpha tools

Seeking Alpha tools

Webull – Best for Level 2, Time & Sales, Paper Trading, and News

Webull is a relatively new company that offers a complete suite of products that are tailored to day traders. The company, which was started in China, has more than 9 million users in China and the US. Essentially, Webull is a platform that enables people to buy and sell stocks that are mostly listed in the United States.

The company’s mobile and web platforms have other features that are useful to traders. For example, it offers level 2 data, which is essential in understanding the movement of assets. For starters, level 2 provides information about how the bid and ask prices of different stocks. As a result, this information can tell you whether the stock price will keep on rising or falling. 

It also has a time & sales feature that shows you the volume of orders of a stock through a process that was traditionally known as reading the tape. Most importantly, it has an order book tool that shows you the size of trades implemented by different types of traders.

Other features offered by Webull are the happenings in the options market, charting tools, and the latest news from multiple sources. On the screenshot below, you can see Apple’s chart, options data, time & sales, and level 2.

Webull data

Webull data

TradingView – Best for charting

Started in 2011, TradingView has become one of the most important financial platforms in the world. Indeed, whenever you see a chart in the market, it is probably provided by the company. 

Since it first rolled out in 2011, TradingView has become a leading platform for charting. In technical analysis, it has hundreds of prebuilt technical indicators like moving averages, accumulation and distribution, and the relative strength index (RSI). It also hosts thousands of other crowdsourced technical indicators.

In price action, the platform has multiple tools that will help simplify your trading. For example, it has tools to help you draw the Elliot wave, XABCD patterns, three drives pattern, and triangle patterns. Also, it has other trend analysis tools like the Fibonacci retracement, Gann Square, Pitchfan, and Fib spiral. 

That’s not all. Tradingview also has an economic calendar, tools to create a watchlist and alerts, and hotlists. Perhaps, the best feature of the platform is the fact that people can share their ideas with the rest of the community. 

In the screenshot below, we see a few tools that are available on the TradingView platform.

TradingView platform

TradingView platform

Investing.com – Best for news, premarket, and screening

Investing.com is another platform that will help simplify your stock trading journey. Indeed, according to the data by SimilarWeb, the website is the most visited investing website in the United States. More than 162 million people visited it in the past six months. Also, people tend to stay on the website for a long period.

The site, and its accompanying mobile apps, offers some tools to help traders make better decisions:

  • It has an accurate earnings calendar that provides information on companies that will release their financial results. That is important because companies that are releasing their earnings tend to be highly volatile, which creates important trading opportunities. 

  • The website has a stocks screener tool that can help you narrow down stocks based on your preferred criteria. Indeed, Investing has data from more than 50 countries, including the United States, Kenya, and South Africa.

  • It has an excellent premarket tool that shows you the most active stocks before the market opens and their volume, as below. Other stock trading tools in the platform are dividend and IPO calendar, splits calendar, and pivot point calculations.

Investing.com premarket movers

Investing.com premarket movers

Finviz – Best for screener and insider transactions

Finviz is also an important free platform that provides many tools for traders:

  • It has a comprehensive news tab that sources information from multiple platforms like Bloomberg, New York Times (NYT), and Wall Street Journal. That information can help you make better and well-informed decisions.

  • It provides the most recent analyst calls on a stock. These calls tend to lead to significant movement in stock prices. 

  • It provides data on the latest insider deals, such as stock purchases and sales. Many investors use this information to gauge the future performance of stocks. 

  • It has an excellent screener tool that can help you narrow the stocks to trade in. The screenshot below shows a sample screener for American technology companies with a market cap between $2 billion and $10 billion.

Finviz stock screener

Finviz stock screener

Final thoughts

Times have changed. In the past, traders used to rely on newspapers, pens, and paper to conduct their analysis. Today, very few of them use this information. Instead, they use free and often paid tools to identify trading opportunities. The five tools we have mentioned here are among the most popular. But there are others like Benzinga, Fool, and Yahoo Finance.

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